Assume that less skilled workers are in the lower half of earnings. Which of the following events would cause the 80:20 ratio of incomes to go from 2.0 to 3.0?
A) a 50% increase in everyone's earnings
B) a relative decrease in the supply of unskilled workers
C) a relative decrease in the demand for unskilled workers
D) an increase in welfare payments causes unskilled workers to leave the work force
Correct Answer:
Verified
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